FEDERAL REAL 

PROPERTY

Selected Agencies 

Plan to Use Workforce 

Mobility to Reduce 

Space, but Most 

Efforts Are Too New 

to Have Realized 

Savings

Report to the Chairman, 

Committee on Homeland Security

and Governmental Affairs,

U.S. Senate

October 2013

GAO-14-41

United States Government Accountability Office
United States Government Accountability Office

Highlights of GAO-14-41, a report to the 

Chairman, Committee on Homeland Security 

and Governmental Affairs, U.S. Senate

October 2013

FEDERAL REAL PROPERTY 

Selected Agencies Plan to Use Workforce Mobility to 

Reduce Space, but Most Efforts Are Too New to 

Have Realized Savings

Why GAO Did This Study

New technologies and the adoption of 

alternative work arrangements have 

increasingly enabled employees to 

perform some aspects of their work 

outside of the traditional office 

environment. As requested, GAO 

examined how aspects of mobility have 

affected agencies’ space needs. This 

report identifies (1) actions selected 

agencies have taken as a result of 

increased workforce mobility to reduce 

their space needs; (2) the assistance 

GSA provides federal agencies that 

are exploring reducing their space 

needs, at least partly in response to 

increased workforce mobility; and 

(3) factors selected agencies and 

private sector organizations viewed as 

important to achieving space 

efficiencies in an environment of 

increased workforce mobility. GAO 

focused its review on five agencies: 

GSA, the Department of Agriculture, 

the Internal Revenue Service, the 

Department of Commerce’s USPTO, 

and the Department of Justice’s 

Bureau of Alcohol, Tobacco, Firearms 

and Explosives. Altogether, these five 

agencies reported holding or leasing 

more than 400-million square feet of 

office space in fiscal year 2011. GAO 

reviewed agency-specific guidance 

and other documents related to space 

planning and conducted interviews with 

key officials from the selected 

agencies. GAO also interviewed 

representatives from five private sector 

organizations to obtain their 

perspectives on how the private sector 

plans for its future space needs.

What GAO Recommends

GAO makes no recommendations in 

this report. USPTO commented on the 

estimated cost savings of its hoteling 

programs, as discussed in this report. 

What GAO Found

The five selected agencies GAO reviewed are either exploring or taking actions 

such as increasing “telework” participation and implementing a “hoteling” 

program—which means that employees give up their individual, permanent 

space and use shared, nonpermanent workspaces when they are in the office—

to reduce their space needs. For example, as part of its headquarters renovation, 

the General Services Administration (GSA) is making use of open, collaborative 

work environments and implementing a hoteling program for all employees. In 

addition, the Department of Agriculture set agency-wide goals for increasing the 

number of its employees with approved telework agreements as well as its 

overall telework participation rates for fiscal year 2013. The U.S. Patent and 

Trademark Office (USPTO) has taken steps to reduce its space needs as a result 

of increased workforce mobility for more than a decade, and there are indications 

that USPTO has avoided real estate costs as a result of its efforts. However, 

GAO was unable to obtain sufficient information to determine the accuracy and 

validity of USPTO’s estimated cost savings. Beyond USPTO, the agencies GAO 

reviewed have not yet realized space reductions or cost savings because their 

efforts are too new. In addition, officials at the selected agencies pointed out that 

increasing telework participation or implementing a hoteling program may not be 

appropriate in all instances, such as for employees who work with sensitive or 

classified documents or who interact with members of the public. 

GSA offers general guidance as well as customized programs to help guide 

agencies’ space-planning efforts in an environment of increased workforce 

mobility. In this guidance, GSA has shown that agencies can achieve space 

efficiencies by reconfiguring the layout of existing workstations and implementing 

various alternative work arrangements. While agencies may take steps on their 

own to address their changing space needs, GSA has offered two customized 

programs since 2011 to assist agencies. These programs are designed to help 

agencies explore mobility and achieve space efficiencies; however, GSA’s client 

agencies determine whether to act on GSA’s recommendations, and it may take 

years to realize savings due to factors such as the timing of leases and the cost 

of reconfiguration. 

GAO’s discussions with officials from the selected agencies and private sector 

organizations identified two factors—acquiring information about the current 

utilization of office space, and gaining the support of management and 

employees—that were frequently viewed as important for an organization to 

achieve space efficiencies in an environment of increased workforce mobility. By 

measuring how existing space is being used, organizations are better positioned 

to determine their future space needs. Similarly, by taking steps to obtain the 

support of leadership and employees, organizations can help facilitate the 

acceptance of mobility initiatives. Officials described the loss of dedicated 

workspace resulting from increased mobility as a significant change in the 

workplace and indicated that organizations that try to impose such changes are 

less likely to succeed than those that build organizational support.

View GAO-14-41. For more information, 

contact David J. Wise at (202) 512-5731 or 

wised@gao.gov. 
Page i GAO-14-41 Federal Real Property

Letter 1 

Background 3

Selected Agencies Are Using Workforce Mobility to Increase Their 

Use of Alternative Work Arrangements and Reduce Their Space 

Needs 7

GSA Offers General Guidance and Customized Programs to Help 

Agencies Address Their Changing Space Needs 10

Accurate Data and Organizational Support Were Viewed as 

Important to Achieving Space Efficiencies in an Environment of 

Increased Workforce Mobility 13

Agency Comments and Our Evaluation 15

Appendix I Comments from the U.S. Patent and Trademark Office 17

Appendix II GAO Contact and Staff Acknowledgments 20

Figures

Figure 1: Example of Space Efficiencies Gained by Redesigning 

Space to Reflect Mobility 5

Figure 2: Images Showing the Configuration of GSA’s Office Space 

before and after Renovating Its Headquarters Building 9

Contents 
Page ii GAO-14-41 Federal Real Property

Abbreviations:

ATF Bureau of Alcohol, Tobacco, Firearms and Explosives

GSA General Services Administration 

IRS Internal Revenue Service 

OMB Office of Management and Budget 

USDA Department of Agriculture 

USPTO U.S. Patent and Trademark Office 

This is a work of the U.S. government and is not subject to copyright protection in the 

United States. The published product may be reproduced and distributed in its entirety 

without further permission from GAO. However, because this work may contain 

copyrighted images or other material, permission from the copyright holder may be 

necessary if you wish to reproduce this material separately.
Page 1 GAO-14-41 Federal Real Property

441 G St. N.W.

Washington, DC 20548

October 17, 2013

The Honorable Thomas R. Carper

Chairman

Committee on Homeland Security and Governmental Affairs

United States Senate

Dear Mr. Chairman:

New technologies and the adoption of alternative work arrangements 

such as “telework” and “hoteling” have increasingly enabled employees to 

perform some aspects of their work outside of the traditional office 

environment—such as at home, in the field, or while traveling.1

You asked us to examine how aspects of mobility have affected agencies’ 

space needs.

In recent 

years, the administration has required federal agencies to consider how 

innovative approaches to space management and alternative work 

arrangements could help agencies reduce the need for office space. As 

the federal workspace evolves, the federal government is starting to 

reassess how it uses its real property assets, which includes nearly 800-

million square feet of office space that is owned by the federal 

government or leased by different federal agencies. As the federal 

government’s real property manager, the General Services Administration 

(GSA) provides agencies with guidance regarding real property 

management and manages selected properties for some agencies.

2

 

1

 “Telework” is a work arrangement in which employees perform all or a portion of their 

work at an alternative worksite, such as from home or a telework center. “Hoteling” is a 

work arrangement in which employees work at multiple sites and use nondedicated, 

nonpermanent workspaces assigned for use by reservation on an as needed basis.

We identified: (1) actions selected agencies have taken as 

a result of increased workforce mobility to reduce their space needs; 

(2) the assistance GSA provides federal agencies that are exploring 

reducing their space needs, at least partly in response to increased 

workforce mobility; and (3) factors selected agencies and private sector 

organizations viewed as important to achieving space efficiencies in an 

environment of increased workforce mobility.

2 For purposes of this report, we use the term “mobility” to describe the ability of 

employees, enabled by information technology, to perform their work in areas other than 

an assigned office or workstation.

 
 

Page 2 GAO-14-41 Federal Real Property

We focused our review on five agencies: GSA, the Department of the 

Treasury’s Internal Revenue Service (IRS), the Department of Agriculture 

(USDA), the Department of Commerce’s U.S. Patent and Trademark 

Office (USPTO), and the Department of Justice’s Bureau of Alcohol, 

Tobacco, Firearms and Explosives (ATF). We selected these agencies 

because they have high levels of real property holdings or have adopted 

business practices that support a more mobile workforce.3

We also reviewed Office of Management and Budget (OMB) guidance 

and agency-specific guidance and other documents related to space 

planning, and conducted interviews with key officials from the selected 

agencies. We analyzed Federal Real Property Profile data for fiscal year 

2011, the most recent available, on how much office space was reported 

held and leased by the agencies we reviewed, as well as governmentwide. The Federal Real Property Profile is a database of federally owned 

and leased space held by executive branch agencies. In 2012, we 

reported problems with the reliability of Federal Real Property Profile 

data, but that it can be used in a general sense.

We reviewed 

pertinent laws and regulations that apply to space planning, space 

utilization, and alternative work arrangements. We assessed efforts by 

the selected agencies to pursue space reductions as a result of increased 

workforce mobility based on the July 2010 Presidential Memorandum that 

federal agencies explore how innovative approaches to space 

management could help reduce the need for office space.

4

In addition, we interviewed representatives from five private sector 

organizations—Accenture, Deloitte Consulting, General Mills, Steelcase, 

and TIAA-CREF—to obtain their perspectives on how the private sector 

plans for its future space needs in an environment of increased workforce 

mobility. We selected these organizations because our literature review 

and interviews with agency officials identified them as having adopted 

As such, for this report, 

we used Federal Real Property Profile data for the limited purposes of 

providing background information and selecting agencies for review.

 

3 We made these determinations by analyzing government-wide data on agencies’ real 

property holdings as of fiscal year 2011 and conducting literature reviews and interviews 

with agency officials to identify agencies that have adopted business practices that 

support a more mobile workforce.

4 See GAO, Federal Real Property: National Strategy and Better Data Needed to Improve 

Management of Excess and Underutilized Property, GAO-12-645 (Washington, D.C.: June 

20, 2012).
 

Page 3 GAO-14-41 Federal Real Property

business practices for leveraging the mobility of their workforce or 

adapting their physical space needs to increased workforce mobility. Our 

findings based on the efforts of the selected agencies and private sector 

organizations are not generalizable to other federal agencies or private 

sector organizations, but provide insights.

We conducted this performance audit from January 2013 through October 

2013 in accordance with generally accepted government auditing 

standards. Those standards require that we plan and perform the audit to 

obtain sufficient, appropriate evidence to provide a reasonable basis for 

our findings and conclusions based on our audit objectives. We believe 

that the evidence obtained provides a reasonable basis for our findings 

and conclusions based on our audit objectives. 

“Mobility” is an overarching term that describes the ability of employees, 

enabled by information technology, to perform their work in areas other 

than an assigned office or workstation. GSA has been reporting since the 

late 1990s that federal agencies could do more to reduce their space 

needs and achieve savings by recognizing that many of their employees 

are able to perform their work either outside the office or in smaller 

workspaces. GSA has noted that mobility can improve employees’ worklife balance, such as by giving employees greater control over their 

schedule, and can reduce employees’ commuting time. GSA has also 

noted that federal agencies have not yet widely embraced mobility, but 

trends in the private sector, workforce demographics, and technology 

suggest that agencies could do so in the future.

Organizing the workplace around mobility can reduce the size and 

number of dedicated individual workspaces and accommodate the same 

number of employees in less total physical space. For example, when 

agencies provide the necessary technologies, employees may perform 

their work in areas other than an assigned office or workstation. It may be 

possible for agencies to reduce their space needs when this mobility is 

combined with hoteling, which means that employees give up their 

individual, permanent space and use shared, nonpermanent workspaces 

Background 

Mobility and the

Federal Workspace
 

Page 4 GAO-14-41 Federal Real Property

when they are in the office.5

 

5 Whether an agency can require employees who telework to also participate in a hoteling 

program may be subject to collective bargaining between the agency and its employee 

organization or union.

Other potential benefits include allocating 

more of an organization’s space to collaborative areas, such as 

conference rooms, team rooms, and informal meeting rooms. Figure 1 

illustrates one possible way an agency could reduce its per-employee 

footprint by redesigning space to reflect mobility.
 

Page 5 GAO-14-41 Federal Real Property

Figure 1: Example of Space Efficiencies Gained by Redesigning Space to Reflect Mobility

The federal government’s real property inventory is vast. In fiscal year 

2011, over 42,000 assets reported owned by the federal government or 

leased by federal agencies were categorized as office space—

encompassing nearly 800-million square feet of space. Of this, civilian 

agencies reported holding or leasing about two-thirds, while the 

Department of Defense and the military departments reported holding or 

leasing about one-third. Altogether, the five civilian agencies we 

Federal Real Property 
 

Page 6 GAO-14-41 Federal Real Property

reviewed—GSA, IRS, USDA, USPTO, and ATF—reported holding or 

leasing more than 400-million square feet of office space.

We have reported that the federal government faces challenges 

managing its real property, and we have designated federal real property 

management as a high-risk area.6 For example, we have found that the 

government has excess and underutilized property and often leases 

space in the same areas where it owns underutilized property.7 Practices 

such as these are inefficient, resulting in millions in additional costs to 

federal agencies. The federal government has taken some steps to better 

manage its excess and underutilized properties, and in recent years the 

administration has directed federal agencies to take steps to achieve 

space reductions and cost savings. For example, a June 2010 

Presidential Memorandum directed agencies to explore how innovative 

approaches to space management and alternative work arrangements, 

such as telework, could help reduce the need for real estate and office 

space.8 Subsequently, in May 2012 OMB issued Memorandum M-12-12, 

entitled Promoting Efficient Spending to Support Agency Operations.

9

Section 3 of this memorandum establishes the “Freeze the Footprint” 

policy, which directs agencies to restrict growth in their civilian real estate 

inventory. In March 2013, OMB issued supplementary implementing 

guidance for Freeze the Footprint.10

 

6 See GAO, High-Risk Series: An Update, 

OMB’s implementing guidance 

requires that agencies not increase the total square footage of their office 

GAO-13-283 (Washington, D.C.: Feb. 14, 

2013). Every 2 years, we provide Congress with an update on our High-Risk Program, 

which highlights major areas that are at high risk for fraud, waste, abuse, or 

mismanagement, or need broad reform.

7 See, for example, GAO, Federal Real Property: High-Risk Designation Remains due to 

Persistent Management Challenges, GAO-13-422T (Washington, D.C.: Feb. 27, 2013); 

Federal Real Property: Strategic Partnerships and Local Coordination Could Help 

Agencies Better Utilize Space, GAO-12-779 (Washington, D.C.: July 25, 2012); and 

GAO-12-645. 

8 Presidential Memorandum, Disposing of Unneeded Federal Real Estate—Increasing 

Sales Proceeds, Cutting Operating Costs, and Improving Energy Efficiency, 75 Fed. Reg. 

33987 (June 16, 2010). 

9 Office of Management and Budget, Promoting Efficient Spending to Support Agency 

Operations, OMB, Memorandum M-12-12 (May 11, 2012).

10 Office of Management and Budget, Implementation of OMB Memorandum M-12-12 

Section 3: Freeze the Footprint, Management Procedures Memorandum No. 2013-02 

(Mar. 14, 2013).
 

Page 7 GAO-14-41 Federal Real Property

and warehouse inventory, using fiscal year 2012 as a baseline. OMB’s 

implementing guidance also directs agencies to use various strategies to 

maintain the baseline, including consulting with GSA about using 

technology and space management to consolidate, increase occupancy 

rates in facilities, and eliminate lease arrangements that are not cost or 

space effective.

Officials at the five agencies we reviewed told us they are exploring or 

taking actions to reduce their space needs and achieve space 

efficiencies. These actions depend, in part, on a mobile workforce and 

include increasing telework participation, introducing hoteling, and 

reducing the size of individual workspaces. However, some agency 

officials we spoke with pointed out that actions such as increasing 

telework participation or implementing a hoteling program may not be 

appropriate in all instances. Some employees, for example, may not want 

to telework for personal reasons or be unable to telework due to the 

requirements of their work—these include employees who work with 

sensitive or classified documents, or who interact with members of the 

public as part of the jobs.

With respect to the agencies we reviewed:

USPTO has been taking steps to reduce its space needs as a result 

of increased workforce mobility for more than a decade. For example, 

under USPTO’s Patent Hoteling Program, more than 4,000 full-time 

employees—or about 36 percent of its workforce—telework 4 to 5 

days per week. These full-time teleworking employees do not have a 

personal workspace in the office; instead, they use an automated 

system to reserve a workspace for times when they need to be in the 

office. According to USPTO officials, most of their employees are 

patent examiners who perform solitary, independent work, which 

makes them good candidates for teleworking.11

 

11 Patent examiners are engineers and scientists (scientific and technical professionals) 

who review and make decisions on patent applications.

USPTO officials told 

us their Patent Hoteling Program has enabled USPTO to 

accommodate new hires without having to increase its space needs. 

Further, we note that there are indications that USPTO has avoided 

real estate costs as a result of its efforts. For example, in 2012, the 

Department of Commerce reported, that as a result of USPTO’s 

Selected Agencies

Are Using Workforce 

Mobility to Increase 

Their Use of 

Alternative Work 

Arrangements and 

Reduce Their 

Space Needs
 

Page 8 GAO-14-41 Federal Real Property

Patent Hoteling Program, USPTO has avoided almost $17 million in 

real estate costs annually since 2006 when the program started.

12

• In designing its headquarters renovation, GSA officials told us they 

made extensive use of open, collaborative work environments; 

eliminated private offices for most employees, including senior-level 

employees; established a target ratio of one workstation for every two 

employees; and implemented a hoteling program for all employees. 

GSA also eliminated cubicles in favor of a workbench configuration of 

space, as shown in figure 2. GSA estimates that its renovation, 

scheduled to be complete before the end of 2013, will allow it to 

eliminate the need for additional leased space at four locations in the 

Washington D.C. area, resulting in projected savings of approximately 

$25 million in annual lease payments, and about a 38 percent 

reduction in needed office space. However, this estimate does not 

include the costs of GSA’s renovation, which has not been completed.

In 

addition, an analysis of the costs and benefits of USPTO’s Patent 

Hoteling Program that USPTO conducted for fiscal year 2012 

indicates that USPTO’s estimated savings could be larger. However, 

while we reviewed documentation provided by USPTO regarding its 

estimated cost savings, we could not verify USPTO’s estimates as 

some key assumptions—such as rental costs per square feet—were 

not supported. 

 

12 Department of Commerce, Office of Inspector General, United States Patent and 

Trademark Office: The Patent Hoteling Program Is Succeeding as a Business Strategy, 

Final Report No. OIG-12-018-A (Washington, D.C.: Feb. 1, 2012). 
 

Page 9 GAO-14-41 Federal Real Property

Figure 2: Images Showing the Configuration of GSA’s Office Space before and after Renovating Its Headquarters Building

• The IRS implemented new space standards in October 2012 that 

reflect changes in the mobility of its workforce and is applying these 

new standards as part of its space-planning efforts. Under the IRS’s 

new space standards, employees who work out of the office an 

average of 80 hours or more per month no longer have a dedicated 

workstation and must hotel with other employees who are also out of 

the office an average of 80 hours or more per month.

• USDA set agency-wide goals for increasing the number of its 

employees with approved telework agreements as well as its overall 

telework participation rates for fiscal year 2013. Officials told us they 

believe that the increased use of telework could allow the department 

to reduce its real estate needs. In addition, officials of the Forest 

Service, an agency within USDA, told us that the Forest Service plans 

to increase telework participation, utilize hoteling, and decrease the 

size of individual workstations as part of its headquarters renovation. 

The renovated space, which formerly provided space for 420 

employees, is expected to provide workspace for approximately 760 

employees. Forest Service officials said the agency estimates saving 

at least $5 million in annual rent as a result of these efforts. However, 

this estimate does not include the costs for its headquarters 

renovation, which has not yet been completed.

• ATF officials told us they are developing a workstation-sharing policy 

for those employees who telework 3 or more days per week. 

According to ATF officials, this policy, which they expect to have in 
 

Page 10 GAO-14-41 Federal Real Property

place in October 2013, will help ATF reduce the amount of space it 

needs to lease in the future.

Officials at each of the five agencies we reviewed told us that they expect 

their efforts will result in space reductions and cost savings over time. 

However, it is too early to determine the specific cost savings that might 

be realized for actions agencies like GSA and the Forest Service are 

taking, given that they are in progress.

Since the late 1990s, GSA has issued several reports that provide 

general guidance to assist with agencies’ space-planning efforts in an 

environment of increased workforce mobility. These reports have 

highlighted the variety of actions that agencies can take to achieve space 

efficiencies and help ensure that workspaces adequately support their 

agencies’ missions. GSA’s research on how public and private sector 

organizations use office space shows that office space in general, and 

federal office space specifically, is often underutilized as employees work 

elsewhere. For example, in 2006, GSA reported that its surveys of federal 

workspaces indicate that employees are typically seated at their desks 

less than one-third of the average work day because they are often 

working elsewhere—collaborating with team members, working off-site, or 

in meetings—the rest of the time.13

While federal agencies are ultimately responsible for addressing their 

changing space needs, they can also seek assistance from GSA. An 

official at the Forest Service’s headquarters told us the Forest Service 

worked with GSA to measure utilization of its leased office space in the 

Washington D.C. area. According to the official, working with GSA helped 

provide the Forest Service with information on how its space was being 

used, and helped the Forest Service determine that it could reduce its 

office space needs by 25 percent.

In its reports, GSA has provided 

examples of how various federal agencies have achieved space 

efficiencies, including reducing their space needs, through reconfiguring 

the layout of existing workstations and implementing various alternative 

work arrangements, such as hoteling and increased use of telework.

 

13 General Services Administration, Workplace Matters (Washington, D.C.: 2006).

GSA Offers

General Guidance

and Customized 

Programs to Help 

Agencies Address 

Their Changing

Space Needs
 

Page 11 GAO-14-41 Federal Real Property

In late 2011, GSA established a Workplace Program Management Office 

designed to help agencies explore and implement mobility initiatives. 

GSA helps agencies explore mobility as part of a broader approach to 

space planning as well as engaging workplace strategists in developing 

solutions focused on mission, people, and space opportunities. For 

example, since 2011 GSA has offered two customized programs known 

as Client Portfolio Planning and National Engagements for Workplace 

Services. In part, these programs are designed to help agencies explore 

mobility and achieve space efficiencies and also determine the type of 

workplace configuration that best supports the accomplishment of the 

agency’s mission. According to GSA officials, these programs also offer 

additional benefits, such as increased employee satisfaction. GSA 

officials stressed that customized programs work better because each 

agency has a unique mission and culture.

GSA officials describe the Client Portfolio Planning program as one that 

will help an agency find ways to increase energy efficiency and mobility, 

potentially allowing an agency to reduce its need for office space. GSA 

collects information about the client agency’s space use and needs 

through various instruments, including employee surveys. GSA 

subsequently works with the agency to identify potential opportunities and 

develops recommendations. According to GSA officials, having a client 

agency actively participate in this process is a key factor to achieving 

success in implementing GSA recommendations. If an agency chooses to 

act upon GSA’s recommendations, it could take years to realize savings 

due to factors such as the timing of leases, the cost of reconfiguration, 

and negotiation with employee organizations. GSA officials told us that 

they work with three new agencies each year and currently have nine 

departments or agencies participating in this program.14

Unlike the Client Portfolio Planning program, GSA’s National 

Engagements for Workplace Services program is designed to help 

agencies examine their operations and identify new ways of working that 

leverage technology and furniture solutions. According to GSA, the 

information obtained by participating in this program can help guide an 

 

14 At the time of our review, these were the Departments of Commerce, Health and 

Human Services, and State; the Environmental Protection Agency; the Federal Aviation 

Administration; the Federal Emergency Management Agency; Immigration and Customs 

Enforcement; the Securities and Exchange Commission; and the Social Security 

Administration.
 

Page 12 GAO-14-41 Federal Real Property

agency’s space-planning efforts and mobility initiatives and provide a 

business case for making changes. GSA funds initial services, such as 

performing space utilization studies, evaluating existing workplace 

conditions, developing alternative work arrangement standards, and 

implementing pilot programs. The client agency funds subsequent 

services, such as implementing developed programs and evaluating the 

results. To date, GSA has completed national engagements with two 

agencies—the Defense Contract Audit Agency and USPTO—and is in 

various stages of working with eight other departments or agencies.15

Several factors can affect what strategies or recommendations, if any, 

GSA’s clients may decide to implement as a result of these programs. 

These include an agency’s culture, mission, funding sources, and the 

flexibility it has within its existing leases. For example, USPTO stated that 

while it concurs with the goal of releasing space when leases expired, its 

future staffing projections need to be considered when evaluating any 

proposals. In addition, USPTO noted that it was in ongoing discussions 

with its employee organization over changes affecting employee 

workspaces. Also, not all of GSA’s client agencies may complete these 

programs. For example, GSA officials told us that because one agency 

did not actively participate during the planning processes of the Client 

Portfolio Planning program, GSA opted to refocus its efforts on another 

agency that it perceived was more willing to collaborate in the planning 

process.

Of 

the agencies we reviewed, USPTO has worked with GSA under both 

programs. According to USPTO officials, as a result of working with GSA, 

USPTO set a goal of releasing space when leases expire and is exploring 

opportunities to consolidate additional personnel within its headquarters 

building.

GSA officials also noted that because these programs are relatively new, 

they involve an iterative and ongoing learning process, including the 

development of tools to help agencies explore the benefits of mobility. For 

example, GSA is in the process of developing an additional Excel-based 

tool aimed at helping agencies quantify the benefits and costs of 

increased telework participation and implementing other alternative work 

 

15 At the time of our review, these were USDA, the Department of Education, the 

Department of Health and Human Services’ Office of the Chief Information Officer, the 

Federal Protective Service, the Food and Drug Administration, the National Agricultural 

Statistics Service, the U.S. Marshals Service, and U.S. Probation and Pretrial Services.
 

Page 13 GAO-14-41 Federal Real Property

arrangements, such as hoteling. According to GSA officials, this tool will 

be available to agencies later this year. GSA is also developing tools to 

help agencies measure the extent to which their office space is being 

used on a daily basis. For example, GSA is exploring how using mobile 

devices such as cell phones could provide information electronically on 

which offices are occupied. According to GSA officials, such tools would 

allow agencies to collect such information without the need to rely on 

manually observing the workspace.

Our discussions with officials from the five selected agencies and five 

private sector organizations identified two factors as particularly important 

to achieving space efficiencies in an environment of increased workforce 

mobility: acquiring information about how office space is currently used 

and gaining management and employee support. Leading practices in 

capital decision-making and OMB guidance have stressed that having 

accurate data is essential to supporting sound capital planning and 

decision-making.16 By measuring how existing space is being used, 

organizations are better positioned to determine how much space they 

really need. We have also previously found that people are at the center 

of any management initiative for serious change, and that leading 

practices for managing change include ensuring that top leadership is 

behind transformations and that employees are involved throughout the 

transformation.17

Officials from three of the agencies we reviewed told us that organizations 

must first obtain the data necessary to inform their decision-making about 

future space needs; such data might include current information on space 

utilization rates, telework participation, and employee views about 

alternative work arrangements. For example, GSA officials noted that to 

obtain this type of information, they count heads (i.e., they manually count 

the number of offices occupied) and solicit employee opinions on 

 

16 See GAO, Executive Guide: Leading Practices in Capital Decision-Making, 

GAO/AIMD-99-32 (Washington, D.C.: December 1998), and Office of Management and 

Budge, Capital Programming Guide: V. 3.0, Supplement to Office of Management and 

Budget Circular A-11, Planning, Budgeting, and Acquisition of Capital Assets 

(Washington, D.C.: July 2012).

17 GAO, Results-Oriented Cultures: Implementation Steps to Assist Mergers and 

Organizational Transformations, GAO-03-669 (Washington, D.C.: July 2, 2003).

Accurate Data and 

Organizational 

Support Were

Viewed as Important 

to Achieving Space 

Efficiencies in an 

Environment of 

Increased Workforce 

Mobility

Acquiring Information
 

Page 14 GAO-14-41 Federal Real Property

proposed workspace changes. Officials at the other two agencies told us 

they take similar steps. For example, Forest Service officials told us that 

when planning to consolidate space in the Washington, D.C., area, they 

performed head counts twice a day for several weeks to determine the 

feasibility of implementing hoteling. According to these officials, their data 

showed that 60 percent of employee workspaces were occupied at any 

given time. They then used that knowledge to reduce the number of 

workstations in their renovated space. IRS officials told us that when their 

agency implemented a new collaborative workspace design at its 

headquarters, they held focus groups to obtain employee input on various 

design features.

Officials from each of the five private sector organizations we contacted 

also told us that when working to incorporate elements of mobility into 

space planning, either for a client or their own organization, data on how 

employees currently use their space is necessary for informed decisionmaking. For example, a representative of one organization told us that 

when working with a client, his organization first acquires data on how 

that client uses its space by examining costs, office density, and space 

utilization rates; within his own organization, they perform daily head 

counts to determine how their office space is being utilized. Similarly, a 

representative of another organization told us that he advises clients 

seeking to make physical changes to their workplace that they must first 

do some research to understand the current level of office utilization.

When introducing physical space changes associated with increased 

workforce mobility—including the loss of dedicated workspace—

organizations may encounter resistance from agency leaders, managers, 

employees, or employee organizations. Officials from all of the agencies 

and the private sector organizations we contacted described redesigning 

space to reflect mobility as a significant change. Several noted that 

employees have traditionally regarded their workspace as their own 

personal space and that mobility initiatives can result in reduced personal 

space for employees. Some pointed out that managers also may be 

uncomfortable with mobility initiatives for various reasons. For example, 

managers may be uncomfortable supervising employees who work 

outside the office, or they may perceive a reduction in office space to 

mean that they or their programs have become less important to the 

organization.

To implement changes, agencies we reviewed, as well as private sector 

organizations we contacted, have taken a number of actions to gain 

Gaining Support
 

Page 15 GAO-14-41 Federal Real Property

support. For example, IRS officials told us they worked with agency 

leadership as well as their union, when they implemented new space 

standards that reflect changes in the mobility of their workforce. IRS 

officials told us that they used budgetary pressures as the primary driver 

to help both managers and employees understand why they needed to 

substantially change their view of personal workspace. Similarly, Forest 

Service officials told us they worked with their employee organization 

when negotiating the space-sharing arrangements they plan to use in 

their renovated space. Representatives from the private sector told us 

their organizations took similar steps. For example, a representative of 

one organization told us that his organization advises clients to ensure, 

when downsizing offices, that employees understand the link between 

reducing real estate costs and budgetary sustainability. A representative 

from another organization told us that when his organization provides 

space-planning services for clients, it always ensures that employee 

organizations are consulted. Officials from the agencies we reviewed, as 

well as private sector organizations we contacted, told us that 

management needs to gain organizational support for changes and 

cannot impose change on managers and employees. In their opinion, 

organizations that have tried to impose such change are less likely to 

succeed.

We provided a draft of this report to OMB, GSA, IRS, USDA, USPTO, and 

ATF for review and comment. USPTO provided written comments, which 

are reprinted in appendix I. In its comments, USPTO stated that a 

February 2012 audit performed by the Department of Commerce’s 

Inspector General indicated that USPTO has avoided real estate costs as 

a result of its Patent Hoteling Program.

18

 

18 Department of Commerce, Office of Inspector General, United States Patent and 

Trademark Office: The Patent Hoteling Program Is Succeeding as a Business Strategy, 

Final Report No. OIG-12-018-A (Washington, D.C.: Feb. 1, 2012).

USPTO also stated that this 

audit indicated that further analysis would point to increased cost 

avoidance and savings, and that USPTO has since performed an analysis 

of its Patent Hoteling Program’s costs and benefits. As noted in our 

report, we reviewed USPTO’s analysis of the costs and benefits of its 

Patent Hoteling Program. While USPTO’s analysis provided estimates for 

some of the Patent Hoteling Program’s costs and benefits, we found that 

some key assumptions USPTO made—such as rental costs per square 

feet—were not supported. Accordingly, we could not verify USPTO’s 

Agency Comments 

and Our Evaluation
 

Page 16 GAO-14-41 Federal Real Property

estimates. USPTO also provided technical comments, which we 

incorporated where appropriate. 

GSA, IRS, and USDA provided technical comments that we incorporated

where appropriate. ATF and OMB did not have comments on the report. 

As agreed with your office, unless you publicly announce the contents of 

this report earlier, we plan no further distribution until 30 days from the 

report date. At that time, we will send copies of this report to the Director 

of OMB; the Administrator of GSA; the Secretary of Agriculture; the Acting 

IRS Commissioner; the Acting Under Secretary of Commerce for 

Intellectual Property and Acting Director of the USPTO; and the Director 

of ATF. Additional copies will be sent to interested congressional 

committees. We will also make copies available to others upon request, 

and the report is available at no charge on the GAO website at 

http://www.gao.gov. 

If you have any questions about this report, please contact me at 

(202) 512-5731 or wised@gao.gov. Contact points for our Offices of 

Congressional Relations and Public Affairs may be found on the last page 

of this report. GAO staff who made key contributions to this report are 

listed in appendix II.

Sincerely yours,

David J. Wise

Director

Physical Infrastructure Issues
Appendix I: Comments from the

U.S. Patent and Trademark Office

Page 17 GAO-14-41 Federal Real Property

Appendix I: Comments from the

U.S. Patent and Trademark Office
Appendix I: Comments from the

U.S. Patent and Trademark Office

Page 18 GAO-14-41 Federal Real Property
Appendix I: Comments from the

U.S. Patent and Trademark Office

Page 19 GAO-14-41 Federal Real Property
Appendix II: GAO Contact and Staff 

Acknowledgments

Page 20 GAO-14-41 Federal Real Property

David J. Wise, at (202) 512-5731 or wised@gao.gov. 

In addition to the contact named above, Keith B. Cunningham (Assistant 

Director), Russell C. Burnett, Colin J. Fallon, Robert K. Heilman, Wesley

A. Johnson, Terence C. Lam, John P. Robson, James R. Russell, Crystal 

Wesco, and Nancy Zearfoss made key contributions to this report.

Appendix II: GAO Contact and Staff 

Acknowledgments 

GAO Contact 

Staff 

Acknowledgments 

(542215)
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